EU Faces Tough Call on Telecoms Sector

Neelie Kroes is an enthusiastic user of Twitter. On hearing of Verizon Inc buying out Vodafone PLC’s stake for $130 billion earlier this week, the European Union’s commissioner for the digital agenda tweeted: “No doubt there are difficulties in telecoms. But the #Vodafone windfall reminds us how huge and profitable and important the sector is”.

Next week, in an attempt to address some of those difficulties, Ms. Kroes will unveil the latest installment in the labyrinthine process to reform Europe’s fractured, highly-regulated and investment-starved telecoms industry.

But at stake is far more than simply trying to invigorate Europe’s struggling network operators and revitalize what was once a world-leading sector. What is at risk is Europe’s entire digital future.

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